Fla. High Court Backs McCarty On Allstate Subpoena

Florida ’s Supreme Court declined Wednesday to intervene in the dispute between Allstate and the state Office of Insurance Regulation that had led to the insurer’s suspension.

When Allstate balked at supplying documents subpoenaed by the OIR, the firm was suspended by Insurance Commissioner Kevin McCarty—a move he ultimately reversed. The material was requested so OIR could examine Allstate claims handling and rate setting practices.

In its decision, the court said it “determined that it should decline to accept jurisdiction,” and ordered Allstate’s petition for review to be dismissed.

“We are pleased with the Florida Supreme Court’s decision in declining to accept jurisdiction of the matter between Allstate and the Office of Insurance Regulation,” said Mr. McCarty in a statement.

“We did not believe that there was any basis for the court to extend jurisdiction in this matter, because the First District Court of Appeal’s decision was in full compliance with the laws of Florida,” he added.

Mr. McCarty had suspended Allstate’s ability to write new business after he issued a subpoena for company documents and decided that the insurer was not acting in good faith to supply the material he requested. Allstate maintained that it had supplied as much documentation as it could, but that it was prevented from supplying some documents that were privileged and involved trade secrets.

A state appellate court upheld Mr. McCarty’s ruling, although he later lifted the suspension when Allstate provided an affidavit that it had fulfilled the document request to the best of its ability.

In declining to take the case any further, Mr. McCarty said the court upheld the notion that the OIR should be free to obtain any documents it requires from insurance companies.

“The Supreme Court’s decision reassures Floridians that the office has full access to insurers’ books and records and upholds the office’s actions in its efforts to protect consumers,” he said.

Kathy Thomas, a spokesperson for Allstate in Florida, said, “We have reviewed the Supreme Court's ruling and will abide by its decision.”